- Bitcoin appears to have entered a clear consolidation phase as the region is trading at less than $ 11,000
- Overnight, the crypto was slightly rejected after buyers tried to push it towards short-term resistance
- Buyers were unable to overcome the strong selling pressure in this region, and crypto fell back to their support at $ 11,000
- Analysts are now finding that BTC could be a stone's throw from an explosive rally
- There is a crucial level that needs to be closed at the top for this rally to take effect
Bitcoin and the entire cryptocurrency market are trading sideways today. This is the result of the failed attempt to start one leg higher that took place yesterday.
During this time, buyers pushed BTC to $ 11,500. Once it reached that level, it faced an influx of selling pressure that caused its price to drop.
Analysts are finding that the benchmark cryptocurrency remains technically strong at the moment, but to go higher, it may need to go beyond a critical level.
Bitcoin remains below the short-term key resistance after the rejection overnight
At the time of writing, Bitcoin is trading at just under 1% at its current price of $ 11,150. It had been floating here for the past few hours.
The drop to these lows came after the bull brought it to $ 11,500 yesterday. The selling pressure was considerable here and as a result led to the price falling back to the current level.
In order for the cryptocurrency to receive further momentum in the short term, buyers have to overcome around USD 11,360 – as an analyst notes, this was an important level last week.
"Can someone please push the price over the dotted line?" An analyst asked while pointing to the table below.
Image Courtesy of Teddy. Chart via TradingView.
Here's the crucial level that BTC could catapult higher
While looking at Bitcoin's macro trading range established in the past three years, the cryptocurrency is currently just below its mid-range resistance.
Another analyst is taking note that this is a crucial level that, if broken, could lead to it reaching new highs.
“BTC: An important level is the HTF mid-range. HTF just above it with strong volume would convince me that this goes much higher. Until then, I think the price will stay in the lower half of the macro range for several months. Deep pullbacks are there to buy! "
Image Courtesy of TraderXO. Chart via TradingView.
How Bitcoin will respond to these key levels in the coming days could have a major impact on the medium-term outlook.
Featured image from Unsplash. Charts from TradingView.